Panic Hits South Australia: Wind Power Debacle Sends Power Prices Through the Roof

South Australia’s witless Labor government is in a state of full blown panic.

Since the closure of Alinta’s Northern and Playford power stations at Port Augusta, peaking power operators (using highly inefficient Open Cycle Gas Turbines or even diesel generators) have been gouging SA’s crippled power market, every time wind power output collapses. The spot price quickly rockets from around $70 per MWh to $2,000 per MWh and, towards the end of each 60 minute trading period, often hits market cap – previously $13,800, and from 1 July $14,000, per MWh (see our post here).

Only a few months ago, Labor Premier, Jay Weatherill was in Paris spruiking up SA’s wind powered credentials; and cooing about his plans for a 50% Renewable Energy Target.

That was then, this is now. His distraught Energy Minister, Tom Koutsantonis is at wits end, as…